Indexed Universal Life | The Best Investment for Long-Term Goals

Why Indexed Universal Life Insurance Deserves a Closer Look

When most people think of life insurance, they imagine it purely as a death benefit. But what if we told you it could also be one of the most powerful tools for building long-term, tax-advantaged wealth?

In this episode of Triathlon Partners TV, Ira Koyner—founder of Triathlon Partners—dives into why Indexed Universal Life (IUL) may be the best investment for long-term financial goals. Backed by strong tax advantages, equity-linked growth, and protection against market losses, an IUL can do much more than just provide a legacy.

What Is Indexed Universal Life Insurance?

Indexed Universal Life (IUL) is a type of permanent life insurance that allows your cash value to grow based on the performance of a stock market index—such as the S&P 500—without the risk of market losses. It combines:

• A flexible death benefit
• Tax-deferred accumulation
• Tax-exempt income potential
• Market-linked upside (with a cap)
• 0% downside protection (the “floor”)

Watch Ira Koyner explain the full strategy in this video:

Key Benefits of Indexed Universal Life Insurance

1. Powerful Tax Treatment

IUL offers tax-deferred growth and the ability to access tax-exempt cash flow through policy loans. Think of it as a Roth IRA with no income limits or contribution caps.

• Tax-free growth of your investment
• Tax-exempt withdrawals via policy loans
• No 1099s or RMDs (Required Minimum Distributions)

2. Zero Market Loss Risk

Unlike traditional brokerage accounts, IUL protects your principal with a 0% floor—you can’t lose money due to market performance.

• No negative years
• Annual reset locks in gains
• Consistent long-term performance

3. Market-Linked Growth with a Cap

Each year, your account can grow based on a chosen index (e.g., S&P 500) up to a cap rate, often between 10% and 25% depending on the carrier.

• Potential for double-digit growth
• More consistent returns than volatile portfolios

4. Enhanced Retirement Income Planning

Your IUL can serve as a tax-free income stream in retirement, much like a private pension—especially powerful if structured properly.

• Borrow against cash value tax-free
• Avoid capital gains and income tax
• Flexibility in distribution planning

5. Built-In Death Benefit

While growth is the primary strategy, the IUL also includes a death benefit. Triathlon Partners customizes policies to minimize insurance cost and maximize investment efficiency.

• Legacy protection
• Supplemental to term coverage
• Structured to reduce drag on returns